budget

Politics
5:33 pm
Mon May 23, 2011

State unions call for cost-saving measures in budget

State employee unions are calling on lawmakers to approve government reforms that the unions say would save the state tens of millions of dollars.

A labor organization report says Michigan government has too many managers compared to workers who directly deliver services to the public. It also says the state spends more on outside contracts than it does on its civil service workforce.

Phil Thompson, with union SEIU 517M, says he knows time is running short to influence lawmakers on the current budget.

"Realistically we understand that the elements in this report aren’t going to be able to be handled in the next week or so. What we want to do is set the foundation for an intelligent, in-depth discussion that will generate savings in fiscal 2012, but more importantly to generate millions of dollars in savings in future years."

The state employee unions say efficiencies could save the state about $185 million dollars in the coming year, if lawmakers approved the changes before October.

Politics
5:33 pm
Fri May 20, 2011

Budget deal reduces dollars for redevelopment

The new budget deal struck this week between Governor Rick Snyder and Republican legislative leaders cuts the amount of money for redeveloping abandoned factories and preserving historic buildings.

The governor says the state won’t need to rely so much on targeted incentives in the future.

The new budget will zero out brownfield and historic preservation tax credits, and replace them with a new fund to offer economic development grants.

$50 million will be set aside for brownfields and historic preservation.

That’s $15 to $20 million dollars less than the state targets now.

But Governor Snyder says the state can do a better job of choosing projects "and hopefully make those dollars go farther than they are today."

Mark Morante, with the Michigan Economic Development Corporation, says the state will target only projects most likely to be completed.

In the past, many tax credits that were awarded went unclaimed. He also says the state won’t need to rely on incentives as much because tax changes will bring down the cost of doing business.

"With this six percent corporate income tax and roughly an 80 percent cut in corporate taxes in general, our job will be a little easier on that side of the table, so we will probably need less incentives," said Morante. 

Those tax reforms have been criticized as a tax shift onto individuals. But the governor and his Republican allies in the Legislature say that will be worth it if it creates new jobs.

Politics
3:37 pm
Thu May 19, 2011

Democrats feel slighted on budget deal

A budget deal was reached between Governor Snyder and the State Legislature, but democrats say they feel slighted by the deal.
Lester Graham Michigan Radio

Governor Rick Snyder and Republican leaders in the Legislature have reached a budget deal for the coming fiscal year.

The plan will use hundreds of millions of dollars from a tax revenue windfall to lessen proposed cuts to K-12 schools.

Democratic leaders say the plan violates a deal they agreed to last week, because the money doesn’t go directly to replace the cuts. Instead it will be used to urge schools to cut costs, and help make retirement payments.

"I think that we should motivate people to do the right thing and to find efficiencies where they can," said Democratic Senate Minority Leader Gretchen Whitmer. "And if you want to incentivize them with extra dollars, I’m comfortable with that idea. But this violates the agreement that we had, and the agreement was that we would mitigate the per-pupil foundation allowance so that the dollars would get right into the classroom with the kids."

Republican Senate Majority Leader Randy Richardville says negotiations could have gone more smoothly with Democrats.

"There was no malice, there was no intent to mislead or anything like that, we don’t have that kind of a relationship. But this is the first time that this group of people is actually getting together and negotiating a deal, so there may have been some improvements laid out, we could probably do things better than we did, and we’ll continue to work toward that."

There is about a week and a half left before Governor Snyder’s self-imposed, May 31 budget deadline.

Richardville says he expects the Legislature to meet that goal.

State Budget
6:37 am
Thu May 19, 2011

Legislative leaders meet to finalize budget targets

Capitol Building, Lansing, Michigan
Thetoad Flickr

Governor Rick Snyder met with legislative leaders to refigure budget plans, now that the state is expected to collect more tax revenue than originally predicted.

An application on Snyder’s i-Pad reminds him every day of a looming, self-imposed budget deadline of May 31st. He says he and lawmakers are going to meet that deadline.

"There’s still work to be done, but we’re moving in a very positive direction, and we’re moving on a path to have the Legislature get the budget done by May 31st – so those countdown clocks could pay off.”

Details could be made public as soon as today.

Part of the deal appears to include about $25 million in tax credits for the film industry, and rolling back cuts to K-12 schools. That’s more money than Governor Snyder or the Legislature had originally proposed.

Politics
5:26 pm
Tue May 17, 2011

Part of projected budget windfall expected to go to schools

Part of a projected budget windfall is expected to go toward reducing proposed cuts to Michigan’s K-through-12 schools.

The question floating around the state Capitol is how much of a projected boon in tax revenue collection will go toward reducing cuts to per-student funding, and how much will go toward paying for pensions or into the state’s “rainy day” fund.

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News Roundup
9:21 am
Tue May 17, 2011

In this morning's news...

user brother o'mara creative commons

Lansing City Council makes cuts

On the heels of a failed millage and a $14.7 million budget shortfall, the Lansing City Council approved a budget last night that would eliminate more than 100 city positions. Michigan Radio's Steve Carmody was at the council meeting and reported that dozens of firefighters and police officers could be laid off as well. Mayor Bernero said the cuts in the budget were unavoidable:

"Over half the budget is in police and fire.  And yet, we have insulated police and fire up to this point…because the deficit was too large.   But even now, we are doing everything we can to mitigate the effects on police and fire."

The Lansing State Journal reports that the city will attempt to reduce the number of cuts through employee concessions:

Slightly more than 100 city workers could lose their jobs under Lansing's fiscal 2012 budget, though the city will attempt to preserve up to 61 of them by seeking employee concessions.Under the new budget, approved 5-3 by the City Council on Monday night, $3.3 million in state funds will be matched for every dollar gained in concessions before the fiscal year begins July 1.

New Emergency Manager starts at Detroit Public Schools

Roy Roberts a former GM executive, had his first day on the job yesterday. The Detroit Free Press reports he'll work alongside outgoing Emergency Manager Robert Bobb until Bobb's contract ends "no later than June."

Michigan Radio's Sarah Cwiek reported that Roberts says the district "must undergo a 'cultural change' and reject a 'Rodney Dangerfield kind of mentality' for students to succeed.

Roberts has to balance a budget deficit of $327 million, and he can do that with broadened powers granted to him under the state's new emergency manager law.

Cwiek reports that Roberts "says he doesn’t have plans to dismiss the elected school board or throw out union contracts, though."

The Freep reports that Roberts is working under a one-year, $250,000 contract.

Snyder calls for less humility and more unity

Governor Rick Snyder gave a speech to the Economic Club of Grand Rapids yesterday in which he asked for "less humility, a bit more swagger and a lot more unity among Michiganders," according to Chris Knape from the Grand Rapids Press:

“We're too negative,” Snyder told what was billed as a record Econ Club crowd gathered at the Amway Grand Plaza Hotel. “We look in the rear view mirror too much to say, 'this is what we've always had, so we've got to keep that going.'"

Snyder also lambasted the taste for political winners and losers in the state.

“Too often they will view they won something because somebody else has lost,” he said.

Knape reported that Snyder had "generally positive responses from the business-heavy crowd," except for one element in his speech - tax credits - Snyder's explanation "landed with a thud," according to Knape.

Politics
1:49 pm
Mon May 16, 2011

Lansing decides city budget tonight

The Lansing city council is scheduled to vote on next year's city budget this evening.   Declining property values and rising health care costs are forcing deep spending cuts. 

 City leaders hope an estimated 4 million dollars in state revenue sharing will allow a reduction in the number of possible police and fire fighter layoffs.

Jerry Ambrose is Lansing's city finance director.    He says the Mayor's office is also seeking 3 million dollars in union contract concessions, mainly in health care coverage. 

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Politics
1:24 pm
Mon May 16, 2011

State economists expect Michigan tax revenues to be up

Economists say the state is expected to take in more than $400 million more than anticipated.
Lester Graham Michigan Radio

LANSING, Mich. (AP) - State economists agree that Michigan is expected to take in $429 million more this fiscal year than they forecast in January.

But their predictions for the next budget year have dropped as deep business tax cuts take effect.

Lawmakers will be able to use some of this year's surplus in the next budget year, and lawmakers are likely to consider putting some of the money toward easing deep cuts for public schools in 2011-12.

Without the business tax cut, the state would have gotten nearly $500 million more in the next budget year than state economists had predicted in January. But that will largely disappear as business revenue declines.

The heads of the Treasury Department and House and Senate fiscal agencies agreed on the revenue figures Monday.

Politics
5:00 pm
Fri May 13, 2011

There's good & bad news today about Lansing's city budget crisis

Lansing city council president A'Lynne Robinson (right) talks to the news media about the city's budget crisis, while council vice president Kathie Dunbar listens, outside the Southside Community Center
(photo by Steve Carmody/Michigan Radio)

There’s mixed news today concerning the city of Lansing’s budget crisis.  City leaders have been trying to figure out how to deal with a projected 20 million dollar budget deficit.   

 N0w, city council vice president Kathie Dunbar says the city learned this week that its employee health care costs will rise 2 million dollars higher than expected next year. 

She says fortunately the state legislature has passed a budget plan that should guarantee the city 4 million dollars in state revenue sharing funds. 

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Politics
5:21 pm
Thu May 12, 2011

Tax overhaul passes Michigan Senate

The Michigan Senate passed a tax overhaul plan today that rolls back taxes on Michigan businesses by about $2 billion. The Michigan House is expected to quickly concur with the Senate action and send the measure to Governor Snyder for his signature.
Lester Graham Michigan Radio

Update 5:21 p.m.

Republicans eked out a legislative victory today as Governor Rick Snyder's tax overhaul package cleared the state Senate.

It fell to Snyder’s lieutenant governor to cast the tie-breaking vote.

Lieutenant Governor Brian Calley delivered a short speech before he cast the vote to break the deadlock on the tax reform package he had a hand in designing.

Calley predicted some lawmakers will pay a price for supporting the administration's tax reforms.

"Because real change comes with real consequence," said Calley. "Real change will come with drama."

Seven Republicans joined Democrats to vote against the package, largely because the measure will end the tax exemption on pension income for anyone born after 1946.

Democrats say it will shift the burden of paying for government services to families and the elderly.

State Senator Steve Bieda was one of the Democrats who voted against the measure.

"It’s shifting the tax to those who are least able to pay in our society," said Bieda. "We are talking about the elderly, people who are living on pensions are going to see a huge increase. I think it’s unjust, unwise, and it’s certainly very unfair."

Bieda tried to delay the vote until next week when the state adopts new revenue numbers. It’s expected there will be a windfall of more revenue than was anticipated at the beginning of the year.

The package eliminates the Michigan Business Tax in favor of a corporate profits tax.

It also eliminates a host of tax breaks, including the income tax exemption for people on pensions.

Overall, the package rolls back taxes on businesses by nearly $2 billion. Most of the businesses that would benefit are small and medium-sized corporations.

Republicans say the result will also be a tax code that is simpler and easier to follow.

State Senate Majority Leader Randy Richardville says there are some hard choices in the package, but they combine to make Michigan more business-friendly.

"So we put the good, the bad, the ugly altogether in one package and said, we believe the greater good is worthy of some of the not-so-good or ugly, so to speak."

The Senate bill restores the earned income tax credit for working poor families, but at a reduced rate.

The House is expected to quickly concur with the Senate action and send the measure to Governor Snyder for his signature.

3:55 p.m.

Lieutenant Governor Brian Calley has cast the tie-breaking vote to win Senate approval of Governor Rick Snyder's tax overhaul plan.

The package scraps the Michigan Business Tax in favor of a corporate profits tax.

It will be a net tax cut on many small and mid-sized businesses.

It also eliminates a host of tax breaks, including the income tax exemption for pensions.

Republicans say the result will be a tax code that is simpler and easier to follow and more business-friendly.

Politics
11:46 am
Thu May 12, 2011

Close vote expected on broad Michigan tax proposal

The Michigan Senate is voting on a bill that would overhaul Michigan's tax structure today.
user cedarbenddrive Flickr

Michigan could see some sweeping changes to its tax structure after today's vote.

Michigan's former Senate Majority Leader Mike Bishop sent out this Tweet:

"Here we go ... Senate in caucus now, but will soon emerge to vote on Gov's tax proposal. If it passes, I expect it will be by a vote or 2."

From the Associated Press:

The Republican-led Michigan Senate is preparing for what likely will be a close vote on a proposal that would significantly shake up the state's tax structure.

The vote planned Thursday is on a proposal that would cut overall business taxes by about $1 billion in the fiscal year starting Oct. 1 and $1.7 billion the following year. The key would be replacing the Michigan Business Tax with a 6 percent corporate income tax while eliminating many types of tax credits and exemptions.

Some exemptions on retiree income would end, which has drawn opposition from some Republican lawmakers. Some Republicans also will oppose the measure because it would delay scheduled rollbacks in Michigan's personal income tax rate, which is 4.35 percent.

A committee reported the bill to the Senate floor Thursday.

Politics
3:03 pm
Wed May 11, 2011

State Senate debate continuing on Michigan tax proposal

A Michigan Senate committee isn't yet ready to make a decision on a broad plan that would significantly change business and income tax structures in the state.

The Senate Reforms, Restructuring and Reinventing Committee adjourned Wednesday without a vote on the legislation.

It's still possible the proposal will be voted on in the Republican-led Senate as early as Thursday.

The plan backed by Republican Gov. Rick Snyder would cut overall business taxes about $1 billion in the fiscal year starting Oct. 1 and $1.7 billion the following year. The key would be replacing the
Michigan Business Tax with a 6 percent corporate income tax while eliminating many types of tax credits and exemptions.

Some exemptions on retiree income would end, which has drawn opposition from some Republican lawmakers.

Lansing
1:11 pm
Wed May 11, 2011

Layoffs looming in Lansing

Downtown Lansing
(photo by Steve Carmody/Michigan Radio)

Lansing police officers are waiting to see if they will receive layoffs notices.  The city council next week is expected to approve a city budget that will include deep budget cuts in public safety.   The city is facing a 20 million dollar budget deficit.

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Politics
4:17 pm
Tue May 10, 2011

Governor Snyder making changes to get budget proposal through Senate

Governor Rick Snyder is working to get his budget through the State Senate. He hopes to have an agreement on the next fiscal year's budget by May 31st.
user aunt owwee Flickr

Governor Rick Snyder continues to negotiate with lawmakers to try to get his budget proposal through the Senate.

Parts of his proposal are facing a tough sell, even among his fellow Republicans.

The Snyder administration changed its position on eliminating the earned income credit, and now says families should still be able to claim it, but at a reduced rate.

Families eligible for the state credit in 2009 claimed an average of $432 per household. The Michigan League for Human Services says the reduced credit will still allow eligible families to take $140 off their 2011 tax bill, or add part of it to their return.

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State Budget
6:42 am
Mon May 9, 2011

Snyder says tax reform and budget on track

Capitol Building, Lansing, Michigan
Matthileo Flickr

Governor Rick Snyder enters a critical week as he tries to sell his tax and budget plans to state lawmakers. The governor is still trying to build support from his fellow Republicans in the Legislature. There’s wide agreement on scrapping the Michigan Business Tax and switching to a corporate profits tax while giving most businesses a tax cut. But even a lot of Republicans are balking at a new tax on pensions as well as ending nearly two dozen tax breaks.

On the budget side, many lawmakers continue to push back against the size of cuts the governor’s suggested for to K-through-12 schools. But the governor says the work will get done on time:

“I just view it as part of the process. We did our proposal.  We get different feedback from the House and the Senate. There’s differing views in both of those houses, and we’re going to work through it and we’re on a path to get it done by May 31st.”

That’s the deadline the governor has set for finishing work on the budget and tax reforms.

A state Senate committee is expected to hold hearings and vote on the governor’s tax plan this week -- with a Senate floor vote as soon as Thursday.

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Politics
11:49 am
Fri May 6, 2011

Michigan political roundup: budget proposals

Michigan Capitol in Lansing
matthileo / Flickr

This past Wednesday, the Michigan State House of Representatives approved their proposed budget for the coming fiscal year. Some pieces of the bill include a forty-eight month limit on welfare benefits, a cut to clothing allowances for poor children, a twenty million dollar cut to local bus systems, a ten million dollar cut to funds appropriated to the Detroit Institute of Arts, as well as the cutting of thirty-four State Police officers. 

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State Legislature
6:09 am
Fri May 6, 2011

State House approves education budget

State Capitol Building, Lansing, Michigan

The state House met late into the night last night to approve an education spending plan by a narrow margin. It took several hours for Republican leaders to wrangle enough votes to approve the budget proposal that cuts funding for universities and K-12 schools. Democrats argue the cuts would hurt graduation rates and opportunities for kids.

Republican House Appropriations Committee Chairman Chuck Moss says Democrats’ complaints don’t tell the whole story on school funding.  

“Now I’ve heard a lot of talk about how we’re destroying our education system. I’d just like to say something that this budget cuts K-12, cuts School Aid by 3-point-five percent. The School Aid Fund has gone up 14 percent over the last 10 years."

Democratic state Representative Tim Melton tried to persuade Republican lawmakers not to vote for the measure that would move money from K-12 schools to reduce cuts to colleges and universities. He says it violates what voters intended when they revamped school funding in the mid-1990s.  

 “This is a historic vote, and I don’t think this vote should be taken lightly. We’ve heard conversations about Proposal A, and I wish folks would go back and read Proposal A, especially the new members of this chamber, and tell me one time in that bill do you see the word ‘community colleges’ or ‘universities,’ and keep looking, because it’s not in there."

The House budget proposal would also sanction universities that offer domestic partner benefits to their employees.

The House version of the budget must be reconciled with a Senate spending plan before it goes to Governor Rick Snyder for his signature.

State Legislature
7:54 am
Wed May 4, 2011

Tax plan meets resistance in state Senate

Inside the Capitol Building, Lansing, Michigan
Cedar Bend Drive Flickr

Leaders in the Republican state Senate say they still have to wrangle more votes to get a sweeping tax-reform package passed.

Senate Majority Leader Randy Richardville says he will meet with Governor Rick Snyder and House Speaker Jase Bolger to update them on where the tax overhaul stands in the Senate.

"We want to be in sync. We're worked together as a team so far, and we want to continue to do that."

Even though Richardville has been able to work well with Snyder and Bolger on the tax reform package, it appears he is still meeting resistance to the deal from his fellow Senate Republicans. A handful of Republican senators have said they will not vote for the deal that includes a tax on future pensioners. Richardville says he will not make changes to the proposal as it was agreed upon and passed by the House. But he hopes to have enough votes to pass it through the Senate next week.

Environment
10:53 am
Tue May 3, 2011

Money for Great Lakes restoration

The federal budget left many groups wanting more money, but those lobbying to restore Lake Michigan and the rest of the Great Lakes are actually pretty pleased with the President and Congress.

Andy Buchsbaum co-chairs a group that’s trying to get enough funding over five years to restore the Great Lakes. He says the Great Lakes Restoration Initiative didn’t get all the money it wanted in the 2011 federal budget. But Buchsbaum says given the tight economic times, the $300 million they did get will keep the program on track.

“The Great Lakes did remarkably well this year in the federal budget, and the people in this region will benefit from it.”

In Michigan, Buchsbaum says the money is being used to restore wetlands. It’s also being used to get rid of toxic hot spots, such as the so-called black lagoon in the Detroit River area. And it’s being used to prevent Asian Carp from getting into Lake Michigan.

Buchsbaum says both parties supported Great Lakes restoration because of the economic benefits, and everyone wants their children to be able to swim at the beaches and drink the water.

-Julie Grant for The Environment Report

Detroit
6:45 am
Tue May 3, 2011

Detroit City Council continues hearings on budget

Budget hearings continue today in Detroit. The Detroit City Council’s budget, finance and audit standing committee will discuss the city's Finance Department budget later this afternoon, the Associated Press reports. From the AP:

The Detroit City Council is continuing hearings on Mayor Dave Bing's proposed 2011-12 budget…

Bing presented his proposed $3.1 billion budget to the council last month. He says the city faces a $155 million deficit that could swell in several years unless there are more cuts, and payments to two city pensions and health care expenses are reduced.

Bing met Monday with union leadership where he detailed needed concessions to help cut into the deficit.

The council is expected to make recommendations or changes to Bing's proposal. The new fiscal year begins July 1.

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